Vodafone to start cheaper service

VODAFONE is poised to launch a mobile telephone service for the masses, heading off a challenge from its rival Cellnet.

The service, to be announced on Thursday, will offer low standing charges but higher call charges and will work out much cheaper than existing cellular radio for many people. Typical customers will be those making only one or two calls a day.

The company expects that only about 20 per cent of existing mobile telephone customers will transfer to the cheaper service. It says the package will open a new market for mobile telephony.

In June Cellnet, which has in the past lagged behind Vodafone on subscriber base and on image, announced a package called Liberty that will also provide lower rental costs with more expensive calls.